Turmoil at auto parts suppliers boosts recovery products



The recent turbulence within the US auto parts industry has highlighted the need for hedging recovery risk and predetermining the recovery rate of a bond in advance of any default.

Auto parts supplier Collins & Aikman filed for Chapter 11 protection in May and investors have seen the performance of the firm's debt nosedive. Spreads on Collins & Aikman's 10.75% 2011 bond careered from 600 basis points over asset swaps in February to 1,800bp after the filing.

Following default, the auto supplier's

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here